Nov. 10, 2020
It is my missing-out story. I do not want to write more about frustration. I do think that it is more important for me to learn how not to waste time on worrying, talking, instead, I should focus on business, learn more about Air Canada as a business, how the company work hard to survive this coronavirus.
Air Canada (TSX:AC) investors must have started seeing the light at the end of the tunnel with visible developments on the vaccine front. The airline stock jumped a notable 29% on November 9 and reached its five-month high.
There was a significant surge in Air Canada volume yesterday. More than 27 million shares exchanged hands against its average three-month daily volume of approximately 5 million.
The vaccine news is substantially positive for airline stocks such as Air Canada. A prompter distribution of the same will notably speed up Air Canada’s recovery.
Apart from the vaccine, Air Canada reported much better quarterly numbers yesterday. Its revenue for the third quarter increased by 44% compared to Q2, while losses narrowed as well. Its cash burn slowed to $9 million per day in Q3 against $15 million in the earlier quarter.
While many global airlines are on the verge of filing for bankruptcy, Air Canada is very well-positioned due to its strong balance sheet. Its strong market share and operational efficiency will likely fuel a relatively faster recovery in the post-pandemic environment.